Diamond Capital Advisors Research
Advisory Approach
Diamond Capital Advisors is a boutique, independent investment banking firm headquartered in Los Angeles that specializes in middle market M&A advisory, capital raising, corporate valuations, and strategic advisory services. Founded in 2009 and led by Managing Partner David Herman since 2011, the firm has built a reputation for delivering institutional-quality M&A processes to lower and core middle market companies. The firm operates with a core thesis: business owners in the $5M-$250M range deserve the same level of sophisticated M&A advisory and market access as larger enterprises, but tailored to the economics and timelines of lower middle market transactions. Diamond Capital combines exhaustive buyer outreach with deep sector expertise, maintained through ongoing market research and relationship development across multiple industry verticals.
Sector Focus
Diamond Capital maintains active practices across ten primary industry sectors: business services, consumer products, fitness/health/wellness, food & beverage, healthcare services, manufacturing & distribution, marketing/media/digital media, photonics, retail & restaurants, and technology & internet. Within each sector, the firm has developed specialized expertise. The healthcare practice, led by Managing Director Michael J. Brunelle, focuses on physician practice management groups and behavioral health platforms. The retail and restaurant practice is spearheaded by Managing Director Lawrence R. Johnson, who joined the firm in 2023 bringing over 25 years of M&A experience. The technology and business services verticals are led by Managing Director Shawn Thompson (25+ years investment banking experience) and Managing Director Gary Ferrell. The manufacturing and distribution sector includes expertise in building products, specialty manufacturing, and supply chain optimization, with deals like Evergreen's acquisition by Southern Champion Tray demonstrating active execution in this space.
Deal Track Record
Diamond Capital has advised on numerous transactions ranging from $5M to $150M+ in enterprise value. Representative closed transactions include: Spidell Publishing (tax education business) to CeriFi in 2022, generating a testimonial praising the client's 30% price premium above target; LA Magazine to Engine Vision Media (December 2022), representing media sector expertise; Dreamscape Marketing to SPM Group (a Corridor Capital portfolio company) in January 2022, demonstrating roll-up and add-on transaction execution; RedWave Technology acquisition by 908 Devices (April 2024), where Diamond served as financial advisor, showing forensics/specialty instrumentation sector experience; Evergreen (building products/food service packaging) to Southern Champion Tray; and Entela acquisition by Intertek Group PLC. The firm publishes quarterly M&A market reports and sector-specific research covering engineering services, building products, education/training, and food & beverage, indicating data-driven deal sourcing and market sizing capabilities.
Process & Fee Structure
Diamond Capital runs institutional M&A processes for sell-side, buy-side, recapitalization, and other deal structures. The firm typically manages exclusive or semi-exclusive processes, orchestrating comprehensive buyer outreach campaigns across strategic and private equity targets. The firm works with retainer-based engagement structures common in lower middle market advisory and charges success fees based on transaction value. While specific fee schedules are not publicly disclosed, the firm emphasizes alignment with client outcomes. Typical engagement timelines range from 6-12 months for sell-side transactions, depending on complexity and market conditions. Diamond Capital provides comprehensive services including business valuation (fairness opinions), quality of earnings support, strategic advisory, and post-close transition support.
Buyer Network
Diamond Capital has cultivated relationships with hundreds of private equity firms, strategic acquirers, and financial buyers. Evidence of buyer network strength appears in deal portfolios: recent transactions show private equity buyers (Corridor Capital as majority owner of SPM Group acquisition buyer), strategic buyers (Southern Champion Tray, 908 Devices, Engine Vision Media), and international acquirers (Intertek Group PLC). The firm partners with specialized subsectors: Shawn Thompson holds leadership in technology/industrial software; Gary Ferrell maintains media and marketing relationships (evidenced by LA Magazine engagement); Michael Brunelle leads healthcare sector buyer relationships. The firm also provides capital raising services, indicating relationships with PE firms seeking add-on acquisition candidates. LinkedIn presence and published M&A reports suggest strong engagement with private equity decision-makers tracking lower middle market activity.
Competitive Positioning
Diamond Capital differentiates from pure brokers through: (1) institutional process management combining exhaustive buyer contact with professional deal documentation and negotiation; (2) sector specialization maintaining dedicated practices within 10 verticals, not generalist coverage; (3) market research capability evidenced by quarterly reports with transaction data and valuation multiples across sectors; (4) experienced banking professionals (multiple MDs with 25-35+ years of M&A experience) rather than junior sales staff; (5) integration with Hamilton Grant LLC for regulatory compliance and securities administration; and (6) geographic advantage in Century City with client testimonials praising superior pricing outcomes ("30 percent over my hoped-for price").
Not a Fit If
Based on the firm's positioning and market focus, Diamond Capital typically declines: transactions below $5M TEV (pure business broker territory); pure asset sales or intellectual property licensing (not going-concern business acquisitions); sellers seeking brief, limited buyer contact processes (the firm's value derives from exhaustive outreach); highly distressed or heavily litigated businesses; and businesses requiring specialized financing structures the firm doesn't regularly manage.
Team
The firm has approximately 22 professionals. Key members include: David Herman (Managing Partner, since 2011, Series 79/63 registrations, formerly at Mosaic Capital and West Coast Capital), Michael J. Brunelle (Managing Director, healthcare/biotech specialization, 40+ years raising $2B+ for healthcare companies), Shawn Thompson (Managing Director, 25+ years investment banking/corporate finance, also Managing Director at OEM Capital), Gary Ferrell (Managing Director since 2012, media/business services focus), Lawrence R. Johnson (Managing Director since 2023, 25+ years M&A experience, Columbia MBA, retail/restaurants specialist), Ari Nadelman (Managing Director since February 2024, 35+ years experience, serial entrepreneur/business builder), Michael J. DeDonato (Managing Director, finance/corporate development background), and John L. Cohn (Senior Advisor).
Geographic Coverage
Headquartered in Century City/Los Angeles, California. The firm has demonstrated deal execution across California, the United States (LA Magazine, 908 Devices on East Coast, Southern Champion Tray, Intertek/international). The location provides access to West Coast technology, entertainment, and consumer companies, as well as PE firms with Los Angeles presence (Corridor Capital, etc.). Relationships extend nationally and internationally based on buyer network.
Market Activity & Strategic Insights
Diamond Capital maintains an active thought leadership platform publishing quarterly M&A updates tracking deal volume, pricing, and sector trends in the lower middle market. Recent publications (2025) include updates on lower middle market volume trends, building products sector dynamics, education/training M&A, food & beverage, and engineering services. The firm tracks that private equity represents ~50% of all LMM transactions (as of 2024), and actively manages deals across both PE and strategic buyer audiences. The publication cadence indicates robust deal sourcing and relationship management across market cycles.